Between regulatory changes, increased technology troubles and everyday exposures, the past year has seen a significant increase in liability claims for senior-level business executives. Indeed, a recent survey found that nearly a quarter of senior managers have had at least one claim made against them, and over 30 per cent reported concerns of a claim headed their way in the future.
In response to this growing culture of increased directors' and officers' liability, 70 per cent of senior decision makers said that their job responsibilities have increased in the last 12 months. In addition, over 30 per cent of respondents said there is a greater emphasis now on senior management accountability than ever before. Key business elements that have led to such liability growth include technology, political and regulatory changes, as well as environmental factors.
Senior management can face claims from a variety of parties (e.g. employees, clients and governing body) for a range of reasons (e.g. discrimination, noncompliance and mismanagement), placing them at increased risk. And the consequences of liability concerns can be severe, including legal expenses, hefty fines and even jail time.
Such a culture shift emphasises the need for robust D&O liability cover.
For more information, contact ICB Group today.
The content of this Profile is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly.
© 2019 Zywave, Inc. All rights reserved.